Rim and Its Acquisition
In early 2002, Chris Wornald, as the director of strategic alliances for RIM, believed the tremendous synergy value offered from the acquisition of Slangsoft and its importance for RIM’s future Asian market. However, after his successful presentation on the deal to senior executives, one piece of archived news on Jerusalem Post got the attention from RIM’s director of legal affairs. The widespread panic and paranoia among Slangsoft employees, unrealized revenue from HP and multiple registrations became a great concern. Thus, Chris Wornald had to accurately measure the benefits RIM would gain from Slangsoft and the risks associated with its operation and corporate culture. Moreover, it is significant to draft a detailed …show more content…
It had three main products: a core keyboard mapping engine, 52 language scalable vector fonts and a predictive input engine. Its well-developed Intelligent Text Input and Display (iTID) technology was essential for RIM’s entry into Asian market. Many RIM competitors also desired this technology. Slangsoft has signed licensing deals with nine companies and was in the stage of negotiation with one cellphone company. Arie Mazur, CEO and president of Slangsoft, showed his welcome towards building a closer relationship with RIM. However, former Slangsoft employees had or were considering sue the company for unpaid salaries, and alleged physical and personal abuse. Creditors also claimed their trouble collecting receivables. It also has problem in term of transferred intellectual property and deal issues with HP (one of RIM’s competitors)
There are three main alternatives for RIM at current: acquisition of Slangsoft, acquisition of Slangsoft’s competitors and outsourcing or developing own input and font display technology. Before analyzing the advantages and drawbacks of those three alternatives, we needed to firstly assess RIM’s current performance and the moving direction this year, in three years and ten years, then visualize the business strategy in terms of goals, product market focus, value proposition and core activities, and lastly apply strategic models to position RIM’s needs from the deal.
We used the performance matrix